DETERMINATION OF IMPAIRMENT LOSSES RESERVE AND ITS IMPACT ON INTEREST EARNED AT PT BANK MANDIRI (PERSERO) TBK FROM 2014-2018

  • M. Noor Salim School of Business, MercuBuana University, Jakarta, Indonesia
  • Andreas Latuperissa School of Business, MercuBuana University, Jakarta, Indonesia
Keywords: Suspension of Debt Payment Obligations, Credit Quality, Non Performance Loan, Debt Repayment Obligation, Allowance for Impairment Losses, Interest Earned

Abstract

The purpose of this study is: 1) To analyze how the different ways of determining impairment losses reserve will affect the interest earned 2) To make recommendation on the best way to determine the impairment losses reserve. This research method uses a quantitative approach based on time series data and cross sections. The population in this study is PT. Bank Mandiri (Persero) Tbk. In this study the sampling technique used probability sampling method. Determination of the sample using the simple random sampling method. Data analysis method in this study uses multiple regression analysis with the help of SPSS version 24.00. The results of the study show some conclusions as follows: 1) Delay in debt payment obligations (PKPU) is proven to have an influence on allowance for impairment losses (CKPN) with a positive relationship. 2) Credit quality (KK) is proven to have an influence on allowance for impairment losses (CKPN) in a negative direction. 3) Delayed debt payment obligations (PKPU) have been proven to influence interest earned with a negative relationship. 4) Credit quality (KK) is proven to have an influence on interest earned and 5) Allowance for impairment losses (CKPN) is proven to have an influence on interest earned with a negative relationship.

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Published
2019-11-30
How to Cite
Salim, M. N., & Latuperissa, A. (2019). DETERMINATION OF IMPAIRMENT LOSSES RESERVE AND ITS IMPACT ON INTEREST EARNED AT PT BANK MANDIRI (PERSERO) TBK FROM 2014-2018 . International Journal of Engineering Technologies and Management Research, 6(11), 59-70. https://doi.org/10.29121/ijetmr.v6.i11.2019.463